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FTC accuses T-Mobile of knowingly billing for fraudulent charges

The Federal Trade Commission has accused T-Mobile of making “hundreds of millions of dollars” through unauthorized “premium” SMS subscriptions offered by third-parties. T-Mobile kept 35 to 40 percent of charges for “content such as flirting tips, horoscope information or celebrity gossip,” which cost users $9.99 per month, the FTC claims. It’s also said that even after T-Mobile was made aware of these fraudulent charges, the carrier sometimes continued to bill customers for the services. A T-Mobile bill excerpt included in the FTC report alleges the carrier included the charges under the vague line of “usage charges.”

The FTC is seeking a court order to prevent T-Mobile from continuing these practices; refunds are also being sought by the commission. T-Mobile has not yet responded to the accusations.